Some Kitsap businesses feel drag of sluggish economy

This year, it appeared local shoppers spent less time browsing and more time looking for a specific gift, which happened to be small accessories and less expensive items, according to some Kitsap businesses.

Numbers provided by the National Retail Federation indicated 53 percent of the nearly 8,300 consumers surveyed nationwide had already bought Christmas presents by early December, with the remainder taking advantage of last-minute sales.

According to The Associated Press, overall U.S. holiday retail sales this year grew at the weakest pace since 2008, when the nation was in a deep recession.

A report that tracks spending on popular holiday goods, the MasterCard Advisors SpendingPulse, said Tuesday that sales in the two months before Christmas increased 0.7 percent, compared with last year. Many analysts had expected holiday sales to grow 3 percent to 4 percent.

Even special sales weren't enough this year for some area businesses counting on Christmas holiday shopping to make up for a lackluster retail year.

"It's taking people longer to decide," said Dan DeMers, owner of American Guitars, a store located in Kitsap Mall. "We're selling lots of guitars still, but (also) lots of accessories are being sold this year. Smaller ticket items."

This year's sales have gone down significantly, something DeMers said nearby shops are experiencing as well.

The nation's financial uncertainty over proposed federal changes in taxes likely played a role in this year's dismal numbers, DeMers said.

The set of changes, dubbed the fiscal cliff, goes into effect in early 2013 unless lawmakers are able to device another plan to replace it.

It is expected to bring $500 billion in tax increases with the majority of the bill passed on to individuals and families, according to the Tax Policy Center, a Washington, D.C.-based analysis group made up of experts on tax and budget policy.

That uncertainty took its toll on Kitsap businesses this holiday, said DeMers.

"It has to do with the economy: How much people will be paying for taxes (next year) and if they'll have less money," he said.

The National Retail Federation survey found 47 percent said the state of the U.S. economy would affect their spending plans.

At Silverdale's RadioShack, small accessory items such as phone cases and headphones were big sellers this year, according to a store manager.

Unlike last holiday, shoppers this year knew what they wanted, coming into the store with an idea, he said.

Shoppers are asking more questions about specific products, rather than browsing, he said.

Although overall sales at Port Orchard's Fred Meyer were higher this Christmas than last, shoppers waited until days before the holiday to shop, according to store director Axel Strakeljahn.

The store did well on home décor and clothing items this year, in addition to flat-screen TVs, thanks to special holiday pricing, he said.

Strakeljahn said during past Christmas seasons, his store saw a steady build from November to December, but this year saw an increase in sales made through last-minute purchases.

Like DeMers, he suspects the last-minute holiday rush is due to the pending fiscal changes.

DeMers is already looking forward to next year's shopping season, hopeful that lawmakers will work out a fair deal for taxpayers.

"I always look forward to the next year. If the politicians can turn the economy around, sales will get better. If they don't, who knows," he said.